Debits and credits represent the left and right side of the account, respectively. There’s actually no complex definition behind these two pillars of double-entry bookkeeping—and saying that debits are inflows and credits are outflows is a common misconception and misapplication of the debit-credit theory. When I was still studying college accounting, it took some time…
What is
What Is LIFO? The Last-in, First-out Method Explained
The last-in, first-out (LIFO) method is an inventory cost flow assumption where the most recently purchased items are considered sold first, directly impacting the cost of goods sold (COGS) on the income statement. This means newer inventory costs are used to calculate COGS, while older inventory costs remain on the balance sheet as inventory. In…
What Is Multifamily Financing? Types, Rates & Terms
Multifamily financing is commonly used to refinance, acquire, or cover construction costs on a multiunit property. Construction costs can include repairs, renovations, and other upgrades made to land and existing buildings. Eligible properties can vary depending on the lender you choose, but usually encompass any property with more than one unit such as duplexes, triplexes,…
What Is Professional Development? Importance and Benefits
Professional development is the ongoing and intentional process of an individual learning and improving their knowledge, skills, and abilities in their chosen profession. Small businesses should encourage and foster professional development opportunities to ensure employees remain adaptable, competitive, and up-to-date in their skills after entering the workforce. Going beyond formal education, professional development extends into…
What Is Employee Relations? Small Business Guide
Strong employee relations drive engagement and productivity through open communication. It involves creating an environment where employees can share ideas, concerns, and feedback without repercussions.
Overview of Employee Relations As a subset of human resources, employee relations are the interactions between employers and employees. They are not merely transactional, but reflect the company’s values, commitment to its workforce, and capacity for an inclusive environment. Employee relations professionals work to ensure employees feel heard and valued, resolve grievances, and improve overall…
Full-time Equivalent (FTE): Definition, Calculation and Examples
FTE stands for full-time equivalent and is used by businesses to calculate the total number of full-time hours worked within their business among all employees (both part-time and full-time). A full-time employee (working 30 to 40 hours per week) is equal to one FTE; a part-time employee (working 20 hours per week) is equal to…
What Is Employee Management + Tools & Tips
Employee management is a broad term that encompasses every aspect of managing, developing, and interacting with your employees. The aim is to give your team members every tool and advantage necessary to help them achieve their personal goals so that your company reaches its corporate objectives. When you understand how to manage employees in a…
How to Calculate Employee Turnover Rate (+ Free Calculator)
Employee turnover rate is the percentage of employees that leave a company in a specific period, such as for the month, quarter, or year. The process for how to calculate employee turnover rate is fairly straightforward. Simply divide the number of employees that leave within a specific period by the average number of employees that…